JPMorgan CEO Jamie Dimon has warned that an economic “storm” is coming. “You better brace yourself,” he advises. “We just don’t know if it’s a baby or Superstorm Sandy.”
JPMorgan & Chase CEO Jamie Dimon warned of an impending economic storm at a financial conference sponsored by Alliancebernstein Holdings.
“JPMorgan is preparing, and we will be very cautious with our balance sheet,” said the head of JPMorgan.
Dimon is concerned about several key issues. First, the Federal Reserve is expected to reverse its emergency bond-buying programs, shrink its balance sheet, and quantitative tightening (QT) is expected to begin this month. .
He explained that central banks “have no choice because there is too much liquidity in the system… They have to remove some of the liquidity to prevent speculation, falling house prices and the like.”
Dimon also worries about the Russo-Ukrainian war and its impact on goods, food, and fuel. He warned that oil is likely to hit $150-$175 a barrel.
He warned that “wars go bad” and have “unforeseen consequences”.
Last month, Dimon told Bloomberg that the Federal Reserve should have moved to raise interest rates sooner.
Many people have recently warned of a recession, including Big Short investor Michael Burry, Allianz chief economic adviser Mohamed El-Erian and Tesla CEO Elon Musk.